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PNG Gold releases drill results at Imwauna gold project, shares surge

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PNG GOLD Corporation (CVE:PGK) saw its shares rise 17.95 percent on Friday, after the company announced the results from its 2011 exploration program at the Imwauna gold project.

The project is located on Normanby Island, Milne Bay province, eastern Papua New Guinea.

The company noted that the highlight from these holes is a very high grade section of 112 grams per tonne (g/t) gold (Au) over six metres in hole IMH 253, which includes four metres zone grading 162 g/tonne Au and a one metre zone grading 327 g/t Au.

This section confirms the high grades returned from hole IMH 237, which averaged 28.72 g/t Au over a 20.2-metre-wide zone with multiple quartz veins, said the company.

PNG reported that three additional holes were drilled to produce better samples from this part of the deposit and to delineate the continuity of the high grade material indicated by the initial results from hole IMH 237.

It was felt these results needed to be repeated due to the broken, rubbly nature of the core and poor recoveries throughout the zone of veining.

Hole IMH 248 was designed to undercut the veins intersected in hole IMH 237, while hole IMH 249 and IMH 253 were drilled to twin the IMH 237 section.

Hole IMH 248 intersected a 7.5-metre-wide zone of quartz veining, silicification and altered wallrocks, but did not repeat the high values encountered in hole IMH 237.

Drill hole IMH 249, drilled 6.5 metres away in an initial attempt to reproduce the grades intersected in hole IMH237, also returned very modest values indicating that the zone is characterized by high local variation in grade and typical pinch and swell characteristics.

The second twin hole, IMH 253, confirmed and enhanced the high grade results seen in hole IMH 237, with zones of three metre grading 21.69 g/tonne Au and 10 metres farther down the hole, a second zone of six metre grading 112 g/tonne Au.

PNG said that further closely-spaced drilling will be required to fully delineate the orientation of any high grade zones within the deposit and assess the potential for extensions or repetitions either along strike or at depth.

The company said that geological mapping of the Imwauna vein system has extended the system over two kilometres along strike and remains open.

PNG reported that mineralized veins consist of finely crystalline quartz, white to grey in colour, and display typical epithermal textures such as vugs, dog tooth crystals and fine, chalcedonic layering.

Many vein systems on Imwauna including Kela's remain untested and based on results to date and the vein system's potential, PNG said it is planning an aggressive drill program.

The Imwauna exploration licence is located on the north side of Normanby Island, approximately 80 kilometres northeast of Alotau, the provincial capital of Milne Bay province, eastern Papua New Guinea.

Historic exploration drilling has outlined gold mineralization over a strike length of at least 900 metres to an average vertical depth of about 100 metres.

Widths range from 0.5 metre to six metres in the main vein. PNG said recent drilling had confirmed the extension of the Imwauna vein system to depths of 150 metres, with high-grade intercepts evident at this depth.

Drilling is continuing, and is designed to extend the deposit to depth and along strike.

PNG has an advanced stage drilling program in Papua New Guinea. The company holds a 100 percent interest in the Imwauna and Sehulea properties on Normanby Island, Milne Bay Province, Papua New Guinea.

The company’s shares were up three cents on Friday afternoon, to 23 cents.

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TSX-V:PGK
Market: TSX-V
Market Cap: £0.00
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